Hyundai to build the Ioniq 5 in the USA from late 2024

Buoyed by strong demand for the Ioniq 5 in the US, Hyundai has decided to build it at an upcoming plant in the state of Georgia. The electric crossover is one of the brand’s most advanced models to date.

Image: Hyundai

In a recent interview with Automotive News, Jose Muñoz revealed that the Ioniq 5 will be the first model built at the Hyundai Motor Group Metaplant America (HMGMA) production facility in Georgia. Muñoz is the President and Global COO of Hyundai Motor Company (HMC) and also the President and CEO of Hyundai and Genesis Motor North America. He expressed confidence in the decision to localise the Ioniq 5 in the US, saying it was a “no-brainer.”

At present, Hyundai imports the Ioniq 5 into the US in a completely built unit (CBU) form from South Korea, where it manufactures the EV at the Ulsan Plant 1. This makes Ioniq 5 purchases ineligible for the financial incentive of up to $7,500 in federal tax credit. Recording 33,918 units and 48% year-over-year growth in sales in 2023, the Ioniq 5 has proved it’s in strong demand in the country. If it becomes eligible for the federal tax credit incentive, it could see even more significant growth and sell in even bigger volumes.

The HMGMA facility will be the South Korean conglomerate’s first dedicated EV plant in the world. Spanning nearly 3,000 acres and entailing a $7.6 billion investment, the HMGMA production facility will house a vehicle assembly and also a battery cell factory, run through a joint venture with LG Energy Solution. Production was scheduled to commence in Q1 of 2025, but HMGMA advanced the SOP timeline to the end of 2024.

Muñoz shared a more precise SOP timeline in the interview, saying that assembly of the Ioniq 5 in the US will start in October. Local battery assembly through the joint venture with LGES will start a year later. Until then, the batteries of the US-assembled Ioniq 5 will come from an SK On factory in Hungary.

The prices of the Hyundai Ioniq 5 in the US start at $43,175 in the base trim and go up to $60,775 in the top-end trim, both including a $1,375 freight charge. Customers who lease the vehicle benefit of the federal tax credit scheme. The imported Ioniq 5 that’s currently available in the US is the original model introduced in 2021, while the localised model coming later in 2024 will likely be the facelifted version that debuted this March. (paywall)


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